[Federal Register Volume 61, Number 95 (Wednesday, May 15, 1996)]
[Proposed Rules]
[Pages 24473-24474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12025]



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DEPARTMENT OF DEFENSE

48 CFR Part 52


Federal Acquisition Regulation; Use and Charges Clause Class 
Deviation

AGENCY: Department of Defense (DoD).

ACTION: Notice of proposed class deviation.

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SUMMARY: The Department of Defense (DoD) is proposing a class deviation 
from the Federal Acquisition Regulation (FAR) that simplifies the 
method of determining rental charges for government property. The 
proposed class deviation will allow defense contractors to propose 
rental charges for the commercial use of government property and real 
property while revisions to the FAR are being drafted.

DATES: Comments on the proposed class deviation should be submitted in 
writing to the address shown below on or before June 14, 1996 to be 
considered in the formulation of the final class deviation.

ADDRESSES: Interested parties should submit written comments to: Ms. 
Angelena Moy, MPI, Room 3E144, Pentagon, Washington, DC 20301-3000. FAX 
(703) 695-7596.

FOR FURTHER INFORMATION CONTACT:
Ms. Angelena Moy, telephone (703) 695-1098.

SUPPLEMENTARY INFORMATION:

A. Background

    A notice of proposed class deviation was published in the Federal 
Register on September 6, 1995 (60 FR 46259). DoD proposed to deviate 
from the clause at FAR 52.245-9 to expedite implementation of 
simplified government property rental procedures. After evaluating the 
public comments, DoD made substantive revisions to the proposed class 
deviation.
    Therefore, DoD now proposes to deviate from the clause at FAR 
52.245-9 as follows:

Part 52--Solicitation Provisions and Contract Clauses

52.245-9  Use and Charges

    This deviation authorizes DoD to use the following clauses in lieu 
of the clause at 52.245-9. The clause requires contractors, for real 
property and associated fixtures, to obtain certified property 
appraisals that compute a monthly, daily, or hourly rental rate for 
comparable commercial property. Rental charges would be determined by 
multiplying the rental time by an appraisal rental rate expressed as a 
rate per hour. For other government property, rental charges are based 
upon the property's acquisition cost and the actual rental time. The 
clause permits contractors to request that the Government consider 
alternate rental charge methods for either real or other property if 
the contractor considers a time-based rental to be unreasonable or 
impracticable.

USE AND CHARGES (APR 1984) (DEVIATION)

    (a) Definitions. As used in this clause--
    Acquisition cost means the acquisition cost recorded in the 
Contractor's property control system or, in the absence of such 
record, the value attributed by the Government to a government 
property item for purposes of determining a reasonable rental 
charge.
    Government property means property owned or leased by the 
Government.
    Real property means land and rights in land, ground 
improvements, utility distribution systems, and buildings and other 
structures. It does not include foundations and other work necessary 
for installing special tooling, special test equipment, or 
equipment.
    Rental period means the calendar period during which government 
property is made available for commercial purposes.
    Rental time means the number of hours, to the nearest whole 
hour, rented property is actually used for commercial purposes. It 
includes time to set up the property for such purposes, perform 
required maintenance, and restore the property to its condition 
prior to rental.
    (b) General. (1) Rental requests must be submitted to the 
administrative Contracting Officer, identify the property for which 
rental is requested, propose a rental period, and calculate an 
estimated rental charge by using the Contractor's best estimate of 
rental time in the formulae described in paragraph (c) of this 
clause.
    (2) The Contractor shall not use government property for 
commercial purposes until a rental charge for real property, or 
estimated rental charge for other property, is agreed upon. Rented 
property shall be used only on a non-interference basis.
    (c) Rental charge. (1) Real property and associated fixtures. 
(i) The Contractor shall obtain, at its expense, a property 
appraisal from an independent licensed, accredited, or certified 
appraiser that computes a monthly, daily, or hourly rental rate for 
comparable commercial property. The appraisal may be used to compute 
rentals under this clause throughout its effective period or, if an 
effective period is not stated in the appraisal, for one year 
following the date the appraisal was performed. The Contractor shall 
submit the appraisal to the administrative Contracting Officer at 
least 30 days prior to the date the property is needed for 
commercial use. Except as provided in paragraph (c)(1)(iii) of this 
clause, the administrative Contracting Officer shall use the 
appraisal rental rate to determine a reasonable rental charge.
    (ii) Rental charges shall be determined by multiplying the 
rental time by the appraisal rental rate expressed as a rate per 
hour. Monthly or daily appraisal rental rates shall be divided by 
720 or 24, respectively, to determine an hourly rental rate.
    (iii) When the administrative Contracting Officer has reason to 
believe the appraisal rental rate is not reasonable, he or she shall 
promptly notify the Contractor and provide his or her rationale. The 
parties may agree on an alternate means for computing a reasonable 
rental charge.
    (2) Other government property. The Contractor may elect to 
calculate the final rental charge using the appraisal method 
described in paragraph (c)(1) of this clause subject to the 
constraints therein or the following formula in which rental time 
shall be expressed in increments of not less than one hour with 
portions of hours rounded to the next higher hour--
[GRAPHIC] [TIFF OMITTED] TP15MY96.032

    (3) Alternate methodology. The Contractor may request 
consideration of an alternate basis for computing the rental charge 
if it considers a time-based rental unreasonable or impractical.
    (d) Rental payments. (1) Rent is due at the time and place 
specified by the Contracting Officer. If a time is not specified, 
the rental is due 60 days following completion of the rental period. 
The Contractor shall calculate the rental due, and furnish records 
or other supporting data in sufficient detail to permit the 
administrative Contracting Officer to verify the rental time and 
computation. Payment shall be made by check payable to the Treasurer 
of the United States and sent to the payment office specified in 
this contract or by electronic funds transfer to that office.
    (2) Interest will be charged if payment is not made by the 
specified payment date or,

[[Page 24474]]

in the absence of a specified date, the sixty-first day following 
completion of the rental period. Interest will accrue at the 
``Renegotiation Board Interest Rate'' (published in the Federal 
Register semiannually on or about January 1st and July 1st) for the 
period in which the rent is due.
    (3) The Government's acceptance of any rental payment under this 
clause, in whole or in part, shall not be construed as a waiver or 
relinquishment of any rights it may have against the Contractor 
stemming from the Contractor's unauthorized use of government 
property or any other failure to perform this contract according to 
its terms.
    (e) Use revocation. At any time during the rental period, the 
Government may revoke commercial use authorization and require the 
Contractor, at the Contractor's expense, to return the property to 
the Government, restore the property to its pre-rental condition, or 
both.
    (f) Unauthorized use. The unauthorized use of government 
property can subject a person to fines, imprisonment, or both, under 
18 U.S.C. 641.

(End of clause)

List of Subjects in 48 CFR Part 52

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 96-12025 Filed 5-14-96; 8:45 am]
BILLING CODE 5000-04-M